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Patterson to New Yorkers: Piggy Bank Is Empty

December 9, 2009

New York State is teetering on the brink of fiscal disaster, Governor Patterson told us earlier today.

For those of you who did not catch his remarks, here is the story from NY1:

Governor David Paterson, Lieutenant Governor Richard Ravitch and State Budget Director Robert Megna once again stressed the state’s dire financial situation during an address on Wall Street today.

Speaking at the Museum of American Finance, Paterson said New York is on the brink of fiscal disaster, calling the state “ground zero for the recession.”

He said the budget deficit stands at $21 billion, twice his original estimate, and that the state may be unable to pay all of its bills at the end of this month.

“We have a ‘lack of cash’ crisis in this state,” Paterson said.

In an attempt to fix this problem, Paterson said he will ask the state budget director to withhold all payments.

“We cannot play favorites with any program, any program,” responded the governor to an audience question.

He said that he is aware he risks getting sued, but that the move is necessary to keep New York out of insolvency.

Paterson said that Wall Street is an important source of the state’s tax revenue, and that not all recent criticism directed at the financial sector’s alleged excesses is warranted.

“People in Michigan stood behind the engine of their economy. You don’t hear anybody in New England complaining about clam chowder. You don’t hear anybody in Maryland complaining about crab cakes. If you say anything about corn in Iowa, they’ll run you out of town. If you say anything about oil in Texas, they’ll string you up near the nearest tree,” said the governor. “We need to stand behind the engine of our economy in New York, and that engine of the economy is Wall Street.”

Wall Street bonuses and executive packages were also defended by Paterson, who said they were integral parts of financial executives’ salaries.

At the governor’s prior request to reduce state spending by $3.2 billion, the state Legislature passed a bill earlier in the month that only cuts about $2.7 billion.

See NY1’s full story and video here.

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In light of this, one wonders what local GOP prospects and current State Senator Marty Golden think about this state of affairs.

More on that later this week.

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2 Comments
  1. Bella Cullen permalink
    December 10, 2009 3:10 pm

    Disgraceful. And Marty Golden’s response to this crisis is…?

    No, seriously, I’d like to know.

    • Edward Cullen permalink
      December 10, 2009 3:13 pm

      All that local pork spending has come back to haunt us, my love:

      The Golden Prince’s Influence Wanes as Troubling Ties to The Duke Continue

      https://atlasshrugsinbrooklyn.wordpress.com/2009/10/19/the-golden-prince%E2%80%99s-influence-wanes-as-troubling-ties-to-the-duke-continue/

      Now, however, with the recent coup in Albany, it seems The Golden Prince’s ability to doll out pork to his constituents has hit an astounding new low, raising the question of whether his power has finally come to an end. Moreover, his financial ties to The Duke continue to raise eyebrows.

      In the period between 2008 and 2009, The Golden Prince coughed up an astounding amount of money to his handpicked receivers. All in all, he gave $2,878,000 in pork, from churches to charities.

      Astounding. Nearly three million dollars of government money.

      That’s power.

      This all has a heightened irony attached to it, given Golden’s very public pushes for more accountability in government spending.

      Included in these millions of pork was $5000 to Chairman Craig “The Duke” Eaton’s charity, the MHE Research Foundation. While no one questions donations to good causes (which MHE certainly is, by my assessment), conflict of interest questions arise, given that The Duke has already given $18,000 to The Golden Prince over the past nine years. In fact, one comment posted by an Atlas reader notified us that The Golden Prince and Mayor Bloomberg were both in attendance at a recent MHE Research Foundation event, during which Sen. Golden was honored. It seems somewhat troubling that two men that Eaton received favors from and has personally favored are always nearby. One with sizable donations and the other with a 50k-100k Wilson Pakula vote.

      Troubling.

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